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Market Moves: Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over
Technician's Take: Bitcoin Consolidates Around Short-Term Support; Faces Resistance Near $42K

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Sandeep Nailwal, Polygon Co-Founder & Chief Operations Officer
Marc Chandler, Bannockburn Global Forex Chief Market Strategist
Mariana Gomez de la Villa, ING Program Director for Distributed Ledger Technology

Then be sure to catch a special edition of First Mover at 11:00 a.m. ET, when Emily Parker will also host, and featuring guests:

Tom Robinson, Elliptic Co-Founder & Chief Scientist
Josh Swihart, ZCash SVP of Growth
Dan Held, Kraken Head of Growth
Stephen Pair, BitPay CEO
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Kris Marszalek, Crypto.com CEO

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Gainers:

NuCypher (NU): +12.2%
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Stellar (XLM): -2.8%
The Graph (GRT): -2.6%
Yearn Finance (YFI): -2.0%

The CoinDesk 20 are 20 digital assets filtered from the larger universe of thousands of cryptocurrencies and constitute roughly 99% of the market by volume at eight of the largest and most trustworthy exchanges.

Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over

With blockchain data showing that bearish market sentiment is weakening, oversold bitcoin (BTC) may succeed in establishing a base below $40,000.

The seven-day average of net bitcoin inflows to exchanges turned negative for the first time since April 22, data provided by Glassnode show.
That means coins are leaving exchanges after a gap of four weeks, a sign of investors are starting to take direct custody of their holdings, possibly anticipating a price increase.
The fewer coins available for sale on exchanges, the better the chance of the market going up.
Investors typically transfer coins to exchanges when they want to sell their holdings, so consistent net inflows represent a bearish mood, with outflows signalling bullish sentiment.

Bitcoin exchange flows (Source: Glassnode)

The seven-day average of net flows turned positive on April 22, and rose to a 14-month high of 10,628 BTC on May 17, a sign some holders may have been panicking.
The bitcoin sell-off gathered pace, with prices dropping to lows near $30,000 on May 17. The decline marked a slump of more than 50% from the record-high $64,801 reached on April 1.
The panic looks to have subsided this week, with the balance held on exchanges dropping by 7,597 BTC to 2.53 million.
Further outflows from exchanges may be needed to restore battered market confidence and put the cryptocurrency back on a bullish path.
Consistent outflows accompanied bitcoin's 13-month surge from $5,000 to over $60,000, with the balance held in exchange wallets falling by more than 615,000 BTC from March 2020 to April 2021.

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Bitcoin Outflow From Exchanges Suggests Confidence Crypto Rout Is Over

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Bitcoin Consolidates Around Short-Term Support; Faces Resistance Near $42K

Bitcoin (BTC) has traded sideways over the past week as the correction phase stabilizes. The cryptocurrency held short-term support at $36,000 and was trading around $39,000 at the time of writing. Resistance is seen at the upper bound of the week-long range around $42,000.

Hourly bitcoin chart shows short-term support and resistance levels (Source: TradingView)

Bitcoin is holding above the 100-period moving average on the hourly chart which suggests the short-term trend is improving.
Immediate resistance is seen at $40,000 where buyers failed to sustain upside over the past few days. $42,000 is the next level of resistance which is around the 200-day moving average.
Bitcoin is down about 3% over the past seven days as the price recovery from $30,000 stalls.
Volatility has drifted lower since March 23, which is typical during price consolidation. Considering the sharp correction this month, lower volatility could encourage buyers to return at support levels.

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Be on the look out for some of these upcoming events at Consensus 2021. More events can be found here.

12:00 UTC (8:00 a.m. ET)
A Conversation with FinCEN Acting Director Michael Mosier

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Carole House, Director of Cybersecurity and Secure Digital Innovation at the National Security Council, and Amanda Wick, Chief of Legal Affairs at Chainalysis and former DOJ prosecutor, will discuss cutting-edge legal issues in crypto including the role of the new U.S. Presidential administration and new global regulations that are affecting policy around the world. Their discussion will explore legislative and policy debates around hot topics such as the Travel Rule, stablecoins, unhosted wallets, and other critical issues.
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1:1 with Tom Brady & Sam Bankman-Fried

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https://events.bizzabo.com/unlocked101/home

A message from CoinDesk

This Week at #Consensus2021

From Brian Brooks' bold reforms within the Office of the Comptroller of the Currency to Revolut and CashApp becoming crypto onramps for the masses, the last 12 months have witnessed remarkable advances in the crypto industry's bankability.

This week at Consensus by CoinDesk, our virtual big-tent conference, we examine how crypto has gone from persona-non grata to the shiny new thing.

Join our Explorations track "Crypto Neo-Banking ," sponsored by Circle, with JPMorgan's Onyx CEO Umar Farooq, Caitlin Long, Brian Brooks of Binance.us and more at Consensus by CoinDesk, running to May 27. Register today.

In case you missed it, here are the most recent episodes of "First Mover" on CoinDesk TV:

Tom Brady’s Consensus Surprise; Brian Brooks, Filecoin, DNA NFTs

Brian Brooks, the former Acting Comptroller of the Currency and now CEO of Binance U.S., joins "First Mover" to discuss regulator comments and concerns, his reaction to market moves, and Binance U.S. plans. Also, Tom Brady will join the Consensus by CoinDesk conference underway this week. "First Mover" will have that back story. Plus, Anne Fauvre-Willis of Oasis Labs and Kamal Obbad of Nebula Genomics say they're turning its DNA into NFTs.

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As Consensus by CoinDesk 2021 continues with another day full of educational sessions, "First Mover" does its own deep dive into the future of money Wednesday, bringing the topic down to earth and discussing crypto's voyage to space. Joining our discussions today: Diem Co-Creator and Diem Foundation's chief economist Christian Catalini and CEO of SpaceChain Zee Zheng. Plus, markets analysis with Satstreet's Michael Nasser and highlights from yesterday's Consensus keynotes, including MicroStrategy's Michael Saylor and the Federal Reserve's Dr. Lael Brainard.

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